Microsoft’s impending layoffs are partly designed to allocate resources to Halo and other franchises, according to multiple insiders.
The games industry is bracing for massive layoffs at Xbox this month, as part of CEO Asha Sharma’s promise to ‘reset’ the company.
While the full extent of these cutbacks is yet to be confirmed, we’ve already seen Microsoft pull funding on a project from 007 First Light developer IO Interactive and two high-profile execs left Xbox last month.
The big question is what Xbox’s plan is after these layoffs, and based on the word of several insiders, it seems the company is doubling down on Halo.
According to Windows Central editor Jez Corden, Xbox is ‘very heavily evaluating how Halo is run’ as part of these layoffs, although he clarifies that developer Halo Studios is ‘not in negotiations to shut down[sic]’.
‘Some of these cutbacks revolve in allocating resources towards fixing Halo [sic],’ he added on X.
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This was corroborated by Halo insider Rebs Gaming, who shared Corden’s post, adding: ‘Part of the reason for the Xbox layoffs and studio closures is providing more funding/support to Halo and other iconic franchises.’
There have already been reports that Sharma wants to accelerate development on Halo, The Elder Scrolls, and Fallout, specifically. The Elder Scrolls 6 was announced by Bethesda in 2018 and we still haven’t seen a proper trailer, while there hasn’t been a mainline Fallout game since 2015’s Fallout 4, despite the success of the TV show.
A new Elder Scrolls and Fallout seem guaranteed to sell well, but Halo is in a trickier position. The series has struggled to stay relevant ever since developer Bungie left the franchise following 2010’s Halo: Reach. The last entry, 2021’s Halo Infinite had a mixed reception and while initially well-received its separate multiplayer component quickly faded away, due to poor post-launch support.
A big litmus test of Halo’s popularity today will be the response to Halo: Campaign Evolved, which launches across PlayStation 5, Xbox Series X/S, and PC on July 28. The remake is doing well when it comes to pre-orders, but much of that may be due to curious PlayStation owners who have never experienced the franchise before.
As for what studios could suffer at the expense of this shift, the likes of Ninja Theory, Double Fine, Compulsion Games, Undead Labs, and Arkane are all reportedly on the chopping block. Although none of them will necessarily be shut down, as Microsoft is purportedly looking at ways to either sell them off or help them to go independent.
Obsidian, creators of The Outer Worlds 2, were also mentioned as being under threat, but this has been debunked by Bloomberg’s Jason Schreier – along with a rumour that the studio is working on a Fallout game (although why they weren’t put onto such a project long ago is something of a mystery).
Based on all the reports, however, it seems like practically every studio under Microsoft is at risk at the moment, at least in terms of losing a significant amount of staff. The push to rely on its biggest franchises might make sense business wise, but Halo today is a long way from being the safe bet it was 15 years ago.
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